The shares of Twitter Inc. (NYSE: TWTR) edged up as high as 3.54 percent during the midday trading hours on Monday. This bullish stock price movement came after the microblogging corporation revealed that it will purchase Magic Pony Technology. As of the time of writing, the TWTR stock is changing hands at $16.34, up by 1.49 percent or 0.24.
Twitter Inc. is striving to build and boost its machine-learning capabilities. Furthermore, the microblogging platform is trying to enhance the manner by which it delivers videos and photos across its applications. The specific terms of the acquisition deal were not revealed, however, rumors imply that a payment amounting to $150 million has been agreed upon.
Magic Pony Technology is a company based in London, which focuses on developing techniques with the use of neural networks and machine learning that would expand data for images. Basically, neural networks are systems that are designed to think like a human being. The mentioned technologies can be utilized for the enhancement of a video or picture, which is taken through mobile phones and can aid in improving graphics on virtual reality and augmented reality apps.
According to Twitter CEO Mr. Jack Dorsey, machine learning has become the core of all the things that are built at the microblogging corporation. The Twitter CEO also indicated that the purchase of Magic Pony Technology will help the firm improve its foothold in deep learning systems. This, coupled with exceptional talent, users will have the capacity to understand what is occurring around them much better and also why it is important.
“We value deep learning research to help make our world better, and we will keep doing our part to share our work and learnings with the community,” Mr. Dorsey stated.
Magic Pony marks the third machine learning startup that the microblogging company has purchased. During the previous year, Twitter Inc. acquired Whetlab and also took over Madbits in the year 2014.
The Londo-based company has mostly been under the radar as its website does not reveal its primary operations, as well as how many patents are under Magic Pony Technology. According to reports, there are about 20 patents that are filed which will now be under the name of Twitter Inc.
Yet, Magic Pony has been working on a technology that will improve image processing. This division is what the microblogging corporation intends to focus on. There are different parts of the microblogging site that require videos of images, as the majority of its users reads and posts images, while Twitter’s other video products, including Periscope and Vine also utilize the same medium.
The CEO of Magic Pony Technology Mr. Rob Bishop pointed out that his startup has conducted research and developed advanced machine learning techniques, that will enable visual processing to determine features of imagery to be processed in new manners. The Magic Pony CEO concluded that teaming up with the microblogging giant will enable his firm to reach hundreds of millions of individuals all over the world.